Czech Magic: Implementing Inflation-Forecast Targeting at the CNB

IMF Working Papers, January 30, 2017

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Czech Magic: Implementing Inflation-Forecast Targeting at the CNB

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Bibliographic details

• Authors: Kevin Clinton, Tibor Hlédik, Tomás Holub, Douglas Laxton, Hou Wang
• Published: January 30, 2017
• Series: IMF Working Papers
• DOI: https://doi.org/10.5089/9781475572971.001

Implementation experience and core findings

• The paper describes the CNB’s experience implementing an inflation-forecast targeting (IFT) regime.
• The CNB built a system for providing the economic information that policymakers need to implement IFT.
• The CNB’s experience has been described as "very successful in establishing confidence in monetary policy in the Czech Republic."
• The authors conclude the CNB’s experience should provide useful guidance for other central banks considering adopting an IFT regime.

System for economic information and policy implementation

• Focus on building a forecasting and information system to support IFT decisions.
• Emphasis on providing policymakers with the economic information necessary to implement an IFT regime, including model-based forecasts and indicators relevant to inflation and the transmission mechanism.

Policy relevance and thematic coverage

• Subject areas covered: Banking; Central bank policy rate; Exchange rates; Financial services; Foreign exchange; Inflation; Inflation targeting; Monetary policy; Prices; Short term interest rates.
• Keywords included: Central bank policy rate; Exchange rates; financial market; Global; IFT central bank; IFT monetary policy framework; Inflation; Inflation Targeting; interest rate path; market interest rate outlook; Monetary Policy; monetary policy model; nominal interest rate; Optimal Control; output gap; Policy interest rate decision; rate of inflation; reaction function; Short term interest rates; transmission mechanism; WP.

Publication and document specifics

• Authors: Kevin Clinton, Tibor Hlédik, Tomás Holub, Douglas Laxton, Hou Wang
• Date: January 30, 2017
• Series: Working Paper No. 2017/021
• Issue: 021
• Volume: 2017
• Pages: 56
• DOI: https://doi.org/10.5089/9781475572971.001
• ISBN: 9781475572971
• ISSN: 1018-5941
• Stock No: WPIEA2017021

IMF Working Paper: "Czech Magic: Implementing Inflation-Forecast Targeting at the CNB", IMF Working Papers 2017, 021 (2017).

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